A good day ends with a bad mood; S&P threat cracks mkts

It was a complete turn around during the last few minutes of trade as S&P threatened to give India a non-investment grade rating. Markets slipped and ended in red with Sensex falling 51 points and Nifty down by 14 points. Major Headlines Will India be the first BRIC fallen angel? Car sales in India up just 2.8% in May Govt to introduce DTC Bill in next Parliament session BPCL, Videocon gain on reports of higher reserves in Rovuma basin Indian Indices: Today, the Indian markets were in a happy mood throughout the day after a bailout of up to 100 billion euros ($125 billion) for Spain's banking sector eased some concern about its ability to survive the euro zone debt crisis. Later, in the last half an hour of the trading session the markets reversed its trend to negative on statement of S&P which threatened India to be the first Bric country to lose non-investment grade and the markets closed the session on a negative note. From the broader market, BSE Midcap index also ended with losses of 0.20%, while BSE Smallcap index gained marginally by 0.21%. The Market breadth however, was positive. The key Benchmark indices snapped a five-day winning streak, with Sensex quashing 226 points from the day’s high to close at 16,668, down by 50.86 points over its previous close while Nifty closed at 5054.10, down by 14.25 points over its previous close. Tracking today's stock specific action, Suzlon Energy surged 4%, on reports that company has sought the extension from bondholders to repay FCCBs maturing on June 12. A 45-day extension may be approved as bondholders meet the company officials today (June 11, 2012). At the end of the day, the stock closed 1.11% higher. Shanthi Gears hits its 52-week high level on reports that Bharat Forge is in talks to acquire a significant stake in the company. The stock closed 2.01% higher. On the Macro economic front, car sales in India rose by 2.8% in May annually, according to the data from an industry body. This is the seventh consecutive monthly increase but far below industry’s expectations, with demand being hit by a hike in excise duty on the vehicles. Coming to currency, the rupee also slipped to day's low of 55.81/$ after S&P warning. Earlier it opened higher owing to gains in Asian stock market and currencies and touched a day’s high of 55.07/$. Market sentiment: The market breadth stood in favor of advances. Of the 2851 stocks traded on the BSE, 1447 (50.75%) rose, 1260 (44.20%) fell and 144 (5.05%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, eleven sectors closed in red zone, while remaining two closed in green zone. Top Gainers: BSE CD (up by 0.99%), BSE FMCG (rose by 0.19%). Top Losers: BSE CG (down by 1.64%), BSE HC (fell by 1.34%) and BSE Realty (slipped by 1.02%). Among 'A' group stocks, top three gainers were- Voltas (rose by 3.84%), Videocon Indus (up by 3.21%) and Syndicate Bank (surged by 2.84%). Top three losers were- Lupin (down by 3.96%), Sun TV (declined by 3.53%), and Union Bank (fell by 3.44%). Global signals: A wave of relief buying swept across the financial markets on Monday after a rescue package of up to $125 billion for Spain's banking sector eased some concerns about the euro zone debt crisis. European equities leapt today, adding to last week's recovery rally after a bailout for Spain's ailing banks prompted investors to scoop up battered financial shares, with Banco Santander surging 5.7 percent. Asian stocks also rose today, with the regional benchmark index on course for its biggest gain in almost five months, as China’s trade data beat estimates and investors speculated a bailout for Spain’s banks. US stock index futures pointed towards a higher opening at the Wall Street on Monday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 up 1.0-1.3 percent.